The town of Banff is Canada's first incorporated municipality within
a national park. Located in the country's most visited national park
and within a UNESCO World Heritage Site, it faces some exceptional
challenges, constraints and opportunities. The town is both a
service centre for park visitors and a home for 8,352 people.
Banff was officially incorporated as a municipality in 1990, with
the signing of an Incorporation Agreement by the federal and
provincial governments. This agreement transferred most municipal
government powers from the federal government to an elected town
council. The Incorporation Agreement must be amended before any
changes to provincial statutes affecting municipalities come into
effect in Banff.

Compared to other municipalities not located in national parks,
Banff is distinctive in its:

Leased land-base
Because the town rests inside the national park, there is no
freehold land available. The town pays $550,000 annually to the
Government of Canada to lease the land within its municipal
boundaries.

Fixed boundary with no option to grow outward
Banff is 3.93 square kilometres in area and its boundaries are fixed
by federal law. The local government does not have annexation or
expropriation authority to expand its land base.

'Need to reside' requirement
By federal regulation, people must demonstrate a 'need to reside' in
any national park community, including Banff. Generally, individuals
must be employed (or be a dependent of someone who is employed) in
the park in order to live in the town.

Aggressive commercial growth management
Banff has one of the most aggressive and vigorous commercial growth
management strategies of any Canadian municipality. The rate and
amount of commercial growth is limited to 1.5% per annum, thereby
restricting how much square footage can be constructed each year. A
random selection draw for development rights is conducted annually
when the amount of proposed development exceeds the maximum
allowable growth. This type of growth management technique is the
only one of its kind used in Canada.

Population cap
The Banff Community Plan has implemented a population cap of 10,000
permanent residents for the town. Banff's population is expected to
level off in 2006 as available commercial space reaches maximum
capacity